SanDisk 2013 Annual Report Download - page 199

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Other than sales in the U.S., China, South Korea and Taiwan, no individual country represented more
than 10% of the Company’s revenue. Intercompany sales between geographic areas have been eliminated.
Revenue by geographic areas for fiscal years 2013, 2012 and 2011 were as follows (in thousands):
Fiscal years ended
December 29, December 30, January 1,
2013 2012 2012
United States ....................................... $ 877,759 $ 714,293 $ 853,830
China ............................................ 1,887,207 1,195,617 872,295
South Korea ........................................ 496,030 384,409 617,119
Taiwan ............................................ 958,705 981,801 1,419,836
Other Asia-Pacific .................................... 867,897 905,882 987,215
Europe, Middle East and Africa .......................... 780,079 642,494 688,538
Other foreign countries ................................ 302,326 228,013 223,312
Total .......................................... $ 6,170,003 $ 5,052,509 $ 5,662,145
Product revenue from customers is designated based on the geographic location to which the product
is delivered. License and royalty revenue is attributed to countries based upon the location of the
headquarters of the licensee.
Long-lived assets by geographic area were as follows (in thousands):
December 29, December 30,
2013 2012
United States ................................................. $ 313,959 $ 257,655
Japan ....................................................... 553,318 661,393
China ...................................................... 299,704 350,873
Other foreign countries .......................................... 47,070 38,702
Total .................................................... $ 1,214,051 $ 1,308,623
Long-lived assets are attributed to the geographic location in which they are located. The Company
includes in long-lived assets property and equipment, long-term equity investments in Flash Ventures and
other equity investments, and attributes those investments to the location of the investee’s primary
operations.
Customer and Supplier Concentrations. A limited number of customers or licensees have accounted for a
substantial portion of the Company’s revenue. Revenue from the Company’s top 10 customers or licensees
accounted for approximately 49%, 43% and 48% of the Company’s revenue for fiscal years 2013, 2012 and
2011, respectively. In fiscal year 2013 and 2012, Apple Inc. (‘‘Apple’’) accounted for 20% and 13% of the
Company’s revenue, respectively. In fiscal year 2011, Samsung Electronics Co., Ltd. accounted for 10% of
the Company’s revenue. Apple primarily purchases mobile embedded products and solid state drive
(‘‘SSD’’) products from the Company.
All of the Company’s flash memory system products require silicon wafers for the memory and
controller components. The Company’s memory wafers are currently supplied almost entirely from Flash
Ventures and the controller wafers are all manufactured by third-party subcontractors. The failure of any
of these sources to deliver silicon wafers could have a material adverse effect on the Company’s business,
financial condition and results of operations. Moreover, the employees of Toshiba Corporation
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Annual Report